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Consumer confidence in UK property price growth falling
Consumer confidence in the outlook for UK house prices has continued to fall from its peak in July 2014, according to the latest Halifax Housing Market Confidence Tracker. While the overall picture for house prices over the next 12 months is still robust, it has dropped to its lowest level since June 2013. With Halifax forecasting an easing of house price growth to 3% to 5% for 2015, the report shows there has been a reversal of recent momentum, with a higher proportion of consumers now believing the next 12 months will be a better time to buy than to sell and the proportion thinking the next year will be a good time to sell falling to its lowest level since the fourth quarter of 2013. Despite recent forecasts indicating economic growth is expected to reach 3% in 2015, the recent fall in house price expectations mirrors a relative fall in consumer confidence for the economic outlook in the next year having peaked in the second quarter of 2014. Of those surveyed, a net balance of +25 now believe the next 12 months will be a good time to buy, an increase of 14 points since September 2014. Sentiment towards buying is stronger among those who already own their own home, with 62% of owner occupiers stating 2015 will be a good time to buy, compared to 29% who think it will be a bad time, a net balance of +33. In contrast, selling sentiment has fallen to a net balance of +14, a drop of five points since September 2014. And positive selling sentiment fell by six points among owner occupiers between September and November 2014 to +25. ‘The strengthening in the UK economy over the past couple of years has seen a steady convergence between the proportions of people who believe it is a good time to buy and a good time to sell,’ said Craig McKinlay, mortgages director at the Halifax. ‘The outlook for house prices in 2015 is for growth to moderate but continue to increase, which perhaps explains why the proportion thinking it will be a good time to buy is again greater than the proportion thinking it will be a good time to sell,’ he explained. ‘With an interest rate rise expected late 2015, possibly into early 2016 it will be interesting to see what impact the slight reduction in affordability has here,’ he added. The survey also shows that people in Scotland are significantly more likely than those in other regions overall to say 2015 will be a good time to buy at 65% compared to 56%, respectively. Conversely, almost half of those surveyed in the Midlands, 48%, think next year will be a good time to buy, significantly lower than the 56% who say this across Britain. People in Scotland and North England are significantly less likely to say it will be a good time to sell at 38% and 42% compared to 51%, respectively. And people… Continue reading
Belgrave Square named as having the most expensive homes in England and Wales
The streets of Belgravia and Knightsbridge in central London are the most expensive locations in England and Wales to buy a property, according to new research. Located in one of London's most prestigious areas in the heart of Belgravia between Hyde Park Corner and Belgrave Square, Grosvenor Crescent is the most expensive residential street, the research from Lloyds Bank shows. To acquire a typical Grade II listed house on Grosvenor Crescent will cost an average of £16,918,000, it reveals. Indeed, five of the 10 most expensive streets are in the prime residential areas of Belgravia and Knightsbridge in the City of Westminster. They include Eaton Square with an average property value of £15,520,000 and Chester Square at £8,282,000, both in Belgravia. This is followed by Trevor Street at £10,150,000 and Montpelier Street at £8,483,000 in the Knightsbridge area. The remaining four streets are in all in the Royal Borough of Kensington and Chelsea. They include Cadogan Square with an average value of £8,592,000, Elgin Crescent at £7,683,000, Egerton Crescent at £7,100,000 and Hillsleigh Road at £7,091,000. Outside central London the capital's most desirable addresses are Cambridge Gate in Camden which has an average property value of £6,670,000, Coombe Park in Kingston upon Thames at £3,515,000 and Lichfield Road in Richmond upon Thames at £2,863,000. ‘London dominates the list of the most expensive residential addresses in England and Wales. As an international city, London has always attracted overseas buyers and in recent years the capital has been a magnet for ultra high net worth individuals,’ said Andy Hulme, mortgages director at Lloyds Bank. ‘This has led to soaring demand for homes in the prime residential areas of central London and as a result values have grown significantly. For the first time since this survey began, there are three streets with an average property price of over £10 million,’ he explained. ‘The Royal Borough of Kensington and Chelsea has always pulled in wealthy buyers, but this survey shows that properties in Belgravia and around Knightsbridge are now the ones commanding the highest prices,’ he added. Away from London the most expensive streets are both in Oxshott, Surrey; Spicers Field at £3,734,000 followed by Leys Road at £3,609,000. They are followed by Virginia Avenue in Virginia Water at £3,320,000 and Icklingham Road in Cobham at £3,264,000. A place near the sea has obvious attractions for many wealthy buyers and several exclusive addresses are dotted along the south coast. These streets include Sandbanks Road on Poole harbour at £2,493,000, Western Avenue also in Poole at £2,450,000 and Restrongeut Point in Truro at £2,097,000. The only address outside southern England in the top 50 most expensive streets is Park Lane in Altrincham with an average property price of £2,494,000, followed by South Road, also in Altrincham at £2,025,000. Other expensive addresses include Withinlee Road in Macclesfield at £1,960,000, The Ridgway in Leicester at £1,783,000, Tiddington Road in Stratford upon Avon at £1,313,000, Runnymede Road in Newcastle at… Continue reading
Latest CML figures show lending to first time buyers still rising
Lending to UK first time buyers increased by 12% in October compared to the previous month and is now 14% up on the same month in 2013, according to the latest figures from the Council of Mortgage Lenders. By value, there was £4.4 billion advanced to first time buyers in October, 10% up on September and 22% higher than October last year, the CML data also shows. But first time buyer affordability changed fractionally, with first time buyers typically borrowing 3.39 times their gross income, compared to 3.4 in September. The typical loan size for first time buyers fell slightly month on month to £125,800 in October, down from £126,000 in September. First time buyers in October paid 19.5% of gross income towards covering capital and interest payments, little changed from 19.6% in September but still significantly less than the recent peak of 24.8% in December 2007. Lending to home movers also strengthened month on month. In October, the number of loans advanced to movers was 35,000, a 10% rise on the previous month and up 4% on October last year. By value, lending to movers totalled £6.5 billion, 8% up on September and up 10% on October last year. Remortgage lending activity saw a decline month on month in October, with the number of remortgage loans totalling 26,600. This was 6% down on September and 11% down on October last year. The value of these loans at £4.1 billion was down 7% on the previous month and down 5% on October last year. There were 19,600 buy to let loans in October, representing lending of £2.7 billion. This continued the growth seen last month with loan volumes and the value of these loans up 8% on September. Compared to October 2013, the number of loans increased 22% and the value of these loans went up 29%. ‘This has been a year of change for our industry, but the market has shown remarkable stability with house purchase and buy to let lending showing steady, consistent growth throughout 2014 compared to 2013,’ said Paul Smee, director general of the CML. ‘There have been fluctuations month to month but overall the market appears to be showing a positive direction of travel going into the New Year. Stamp duty reform was long overdue and it is welcome that the tax has been changed. It will now be interesting to see how the market reacts. The new structure should be less of a barrier to mobility for those looking to get on the housing ladder or movers looking to switch homes,’ he added. According to David Newnes, director of Your Move and Reeds Rains estate agents, while first time buyers have been forging ahead in the market this year, more recently lending to new buyers is starting to wane. ‘Mortgage market measures introduced in April have trimmed back lending since, coupled with the ongoing debate about when interest rates might rise and the LTI cap this has discouraged… Continue reading
